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15/08/2022 9:32 pm
While modeling for a large machine with high capital needs, you need it to run cost effectively with minimum utilization, even if it means producing more than demand .
Which solution would apply to this scenario? Note: There are 2 correct Answers to this question.
- A . Capacity leveling will be possible for production and storage resources.
- B . Excess stock can be generated and will need to be staged in an overflow warehouse.
- C . Enough demands can be pulled forward and pull production will occur.
- D . Balance can be achieved between excessive prebuild and minimum utilization by incorporating violation costs.
Suggested Answer: C,D